Utility apologizes for overcharging for electricity from 3 plants to be divested

Exelon has agreed to pay a $400,000 fine for violating court orders that forbid the company from earning profits on electricity produced from three Maryland coal plants it had to sell as a condition for gaining approval under antitrust law for its $7.9 billion merger with Constellation Energy Group.

While the three coal plants were being marketed, the Department of Justice had required Exelon to sell the electricity produced by those plants for cost. Exelon said Thursday that during a two-week period in March, the company inadvertently profited from that electricity due to a computer glitch that charged a higher rate.

"We are disappointed this error occurred. We accept full responsibility for our actions," the company said in a statement. "The mistake resulted in little impact on market participants or Maryland customers. Exelon is 100 percent committed to full compliance with the rules and regulations governing our business activities, including obligations imposed as part of our merger approvals. We identified the inadvertent bidding error and promptly notified the U.S. Department of Justice, the Federal Energy Regulatory Commission and the Maryland Public Service Commission. We have redoubled efforts to ensure 100 percent compliance performance."

Exelon also agreed to return the revenues it earned from the electricity sales to the markets that were harmed by the error.

Sale of the three plants -- the 1,273-megawatt Brandon Shores plant, the 399-MW C.P. Crane plant and the 976-MW H.A. Wagner plant -- to Raven Power Holdingts LLC, a subsidiary of private equity firm Riverstone Holdings LLC, is nearly complete in a $400 million cash deal.